A small building contractor has recently experienced two successive years in which work opportunities exceeded the firms capacity. The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature are as shown in the table below. Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of low and high demand: P (low) = .3 and P (high) = .7. NEXT YEAR'S DEMAND Alternative Low High Do nothing $ 50 * $ 60 Expand 20 80 Subcontract 40 70 * Profit in $ thousands. a-1. Determine the expected profit of each alternative. (Enter your answers in thousands.) a-2. Which alternative is best? multiple choice Do nothing Expand Subcontract c. Compute the expected value of perfect information. (Enter your answers in thousands.)